DELUXE CORP (DLX)
US2480191012 - Common Stock
DLX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of DLX while its profitability can be described as average. DLX is cheap, but on the other hand it scores bad on growth. DLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
DLX had positive earnings in the past year.
DLX had a positive operating cash flow in the past year.
Of the past 5 years DLX 4 years were profitable.
DLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of DLX (0.85%) is comparable to the rest of the industry.
With a Return On Equity value of 4.32%, DLX perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
DLX has a Return On Invested Capital of 6.56%. This is in the better half of the industry: DLX outperforms 65.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DLX is below the industry average of 10.00%.
The last Return On Invested Capital (6.56%) for DLX is above the 3 year average (6.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 4.32% | ||
| ROIC | 6.56% |
ROA(3y)1.67%
ROA(5y)-0.96%
ROE(3y)8.68%
ROE(5y)-1.47%
ROIC(3y)6.54%
ROIC(5y)9.08%
1.3 Margins
DLX has a Profit Margin (1.19%) which is in line with its industry peers.
DLX's Profit Margin has declined in the last couple of years.
DLX's Operating Margin of 9.42% is fine compared to the rest of the industry. DLX outperforms 71.08% of its industry peers.
In the last couple of years the Operating Margin of DLX has declined.
DLX has a Gross Margin of 53.04%. This is amongst the best in the industry. DLX outperforms 95.18% of its industry peers.
In the last couple of years the Gross Margin of DLX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.42% | ||
| PM (TTM) | 1.19% | ||
| GM | 53.04% |
OM growth 3Y-9.34%
OM growth 5Y-12.13%
PM growth 3Y34.28%
PM growth 5Y-30.73%
GM growth 3Y-3.59%
GM growth 5Y-2.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DLX is destroying value.
Compared to 1 year ago, DLX has more shares outstanding
Compared to 5 years ago, DLX has less shares outstanding
The debt/assets ratio for DLX has been reduced compared to a year ago.
2.2 Solvency
DLX has an Altman-Z score of 1.35. This is a bad value and indicates that DLX is not financially healthy and even has some risk of bankruptcy.
DLX has a Altman-Z score of 1.35. This is in the lower half of the industry: DLX underperforms 65.06% of its industry peers.
DLX has a debt to FCF ratio of 16.32. This is a negative value and a sign of low solvency as DLX would need 16.32 years to pay back of all of its debts.
DLX has a Debt to FCF ratio (16.32) which is in line with its industry peers.
A Debt/Equity ratio of 2.49 is on the high side and indicates that DLX has dependencies on debt financing.
The Debt to Equity ratio of DLX (2.49) is worse than 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.49 | ||
| Debt/FCF | 16.32 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.82
WACC7.97%
2.3 Liquidity
DLX has a Current Ratio of 0.93. This is a bad value and indicates that DLX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DLX (0.93) is worse than 78.31% of its industry peers.
DLX has a Quick Ratio of 0.93. This is a bad value and indicates that DLX is not financially healthy enough and could expect problems in meeting its short term obligations.
DLX has a worse Quick ratio (0.88) than 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
DLX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.43%.
Measured over the past years, DLX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.21% on average per year.
DLX shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
The Revenue has been growing slightly by 1.87% on average over the past years.
EPS 1Y (TTM)-18.43%
EPS 3Y-13.22%
EPS 5Y-10.21%
EPS growth Q2Q-23.08%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y6.97%
Revenue growth 5Y1.87%
Revenue growth Q2Q-4.72%
3.2 Future
Based on estimates for the next years, DLX will show a small growth in Earnings Per Share. The EPS will grow by 3.93% on average per year.
DLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.70% yearly.
EPS Next Y-2.25%
EPS Next 2Y1.6%
EPS Next 3Y3.93%
EPS Next 5YN/A
Revenue Next Year-1.49%
Revenue Next 2Y-0.14%
Revenue Next 3Y0.7%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DLX is valuated cheaply with a Price/Earnings ratio of 6.13.
DLX's Price/Earnings ratio is rather cheap when compared to the industry. DLX is cheaper than 98.80% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.92, DLX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.27, the valuation of DLX can be described as very cheap.
Based on the Price/Forward Earnings ratio, DLX is valued cheaply inside the industry as 96.39% of the companies are valued more expensively.
DLX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 89.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DLX indicates a rather cheap valuation: DLX is cheaper than 84.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.18 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.6%
EPS Next 3Y3.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.33%, DLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.43, DLX pays a better dividend. On top of this DLX pays more dividend than 98.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, DLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
5.2 History
The dividend of DLX has a limited annual growth rate of 0.03%.
DLX has paid a dividend for at least 10 years, which is a reliable track record.
DLX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.03%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
204.47% of the earnings are spent on dividend by DLX. This is not a sustainable payout ratio.
DLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP204.47%
EPS Next 2Y1.6%
EPS Next 3Y3.93%
DELUXE CORP
NYSE:DLX (4/26/2024, 7:04:00 PM)
After market: 20.35 0 (0%)20.35
+0.3 (+1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap896.01M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.85% | ||
| ROE | 4.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.42% | ||
| PM (TTM) | 1.19% | ||
| GM | 53.04% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.43%
EPS 3Y-13.22%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y6.97%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y